Long-time Afterpay Ltd (ASX: APT) rival Openpay will make its debut on the ASX today.
Openpay will list under the name Openpay Group Ltd (ASX: OPY) at 12:00pm today in the latest buy now, pay later initial public offering (IPO).
Who is Afterpay's latest listed rival, Openpay?
Openpay is an Aussie buy now, pay later provider founded in 2013. They follow a similar model to both Afterpay and Zip Co Ltd (ASX: Z1P).
Users download the app and sign-up with instant approval for an Openpay account. Customers can then go online and choose Openpay as a payment method with participating merchants, paying in interest-free instalments rather than 100% upfront.
Openpay prides itself on its customisable payment plan that works for you. Unlike Afterpay, which has structured (often fortnightly) payments, Openpay is more flexible in its approach.
The buy now, pay later group is reportedly looking to raise $50 million in an IPO underwritten by Shaw & Partners. The group will use the funds for further growth opportunities including its recent United Kingdom expansion.
What should you be watching for today?
As well as keeping an eye on the Openpay share price today, I'm keen to see how the Afterpay share price and Zip Co share price react.
These two groups boast market capitalisations of $7.45 billion and $1.37 billion, respectively. That means Openpay's $50 million IPO is unlikely to unsettle these groups too much.
However, given the Afterpay share price has exploded 139.17% this year and Zip is up a whopping 220.00%, there is clearly growth opportunities in the sector.
Both Afterpay and Zip have announced recent expansions into the UK which puts them even more head-to-head with Openpay.
Foolish takeaway
While it may be a much smaller rival at the moment, I'd watch Openpay shares ahead of 2020.
If investors think that Afterpay or Zip shares are overvalued, but like the buy now, pay later sector, then today's Openpay IPO could be one to watch.
